US citizens living in France maintain accounts at French banks, investment firms, and financial institutions. These accounts trigger two distinct federal reporting obligations: the Report of Foreign Bank and Financial Accounts (FBAR), filed with the Financial Crimes Enforcement Network (FinCEN), and the Statement of Specified Foreign Financial Assets (Form 8938), filed with the IRS under FATCA. These are independent obligations. Satisfying one does not satisfy the other.
The two frameworks share a common purpose — identifying offshore financial assets held by US persons — but operate under different laws, use different thresholds, cover different assets, and are administered by different agencies. Many US residents in France must file both.
A French bank account at BNP Paribas is a foreign financial account for FBAR purposes. A French brokerage account at Boursorama is a foreign financial account. A French assurance-vie policy with a cash surrender value is a foreign financial account. A mobile payment account with Sumeria (formerly Lydia) is a foreign financial account if it holds a balance. The country where an account is held determines its classification, not the currency or the nature of the underlying assets.
FBAR: Who Must File
Any US person who had a financial interest in, or signature or other authority over, at least one foreign financial account is required to file if the aggregate value of all such accounts exceeded $10,000 at any point during the calendar year.
US persons include US citizens and resident aliens regardless of their country of residence. A US citizen living in Lyon with three French bank accounts must apply the $10,000 test to the combined maximum value of all three accounts.
| Test | Rule |
|---|---|
| Threshold | $10,000 aggregate across all foreign financial accounts |
| Timing | Highest combined value at any point during the year — not the year-end balance |
| Currency conversion | Use the Treasury Fiscal Service rate on December 31 of the calendar year |
| Filing method | Electronically through FinCEN’s BSA E-Filing System — separate from the tax return |
| Due date | April 15; automatic extension to October 15 with no request required |
The $10,000 threshold is cumulative. Ten accounts each peaking at $1,500 in the same month produce an aggregate of $15,000 and require FBAR filing for all accounts.
Signature Authority Accounts
FBAR reporting extends beyond accounts a person owns. Any US person with signature or other authority over a foreign financial account — meaning the ability to direct transactions by delivering a signed document — must report that account if the aggregate threshold is met. This captures US employees who have authorization over a French employer’s bank accounts even when they hold no ownership interest.
Form 8938 (FATCA): Who Must File
Form 8938 applies to specified individuals who are required to file a US income tax return and whose specified foreign financial assets exceed the applicable threshold. US citizens living in France who meet the bona fide residence test or the physical presence test qualify for the higher “abroad” thresholds.
| Filing Status | Year-End Value | Any-Time Maximum During Year |
|---|---|---|
| Single / Head of Household | >$200,000 | >$300,000 |
| Married Filing Jointly | >$400,000 | >$600,000 |
| Married Filing Separately | >$200,000 | >$300,000 |
The any-time threshold controls: selling foreign assets before December 31 does not eliminate the Form 8938 obligation if the threshold was crossed at any earlier point in the year.
Form 8938 covers a broader asset class than FBAR. Specified foreign financial assets include foreign financial institution accounts, foreign stocks and securities held for investment outside an account, interests in foreign entities, and financial instruments or contracts with non-US counterparties.
FBAR vs. Form 8938: Key Differences
| Feature | FBAR (FinCEN 114) | Form 8938 (FATCA) |
|---|---|---|
| Governing law | Bank Secrecy Act, 31 U.S.C. §5314 | IRC §6038D |
| Administering agency | FinCEN | IRS |
| Threshold (single, abroad) | $10,000 aggregate | >$200,000 year-end or >$300,000 any time |
| Asset scope | Foreign financial accounts only | All specified foreign financial assets |
| Signature-authority accounts | Reportable | Not covered |
| Filed with | FinCEN BSA E-Filing System | Attached to Form 1040 |
| Satisfies the other? | No | No |
French Assets: Reporting Treatment
| French Asset | FBAR Reportable | Form 8938 Reportable |
|---|---|---|
| French bank account (BNP, Société Générale, etc.) | Yes | Yes, if threshold met |
| French brokerage account (Boursorama, Fortuneo) | Yes | Yes, if threshold met |
| French mobile payment account (Sumeria, formerly Lydia) | Yes | Yes, if threshold met |
| Assurance-vie (life insurance/investment wrapper) | Yes (cash surrender value) | Yes |
| PEA (Plan d’Épargne en Actions) | Yes | Yes |
| PERCO / PER collectif (employer retirement savings) | Generally yes | Depends on treaty treatment |
| French state pension (CNAV retraite de base) | No (benefit entitlement, not a financial account) | Generally excluded |
Penalties
FBAR Penalties
Non-willful violations carry a civil penalty of up to $16,117 per year of non-filing. Following Bittner v. United States, 598 U.S. 85 (2023), penalties are assessed per report (one per year), not per account.
Willful violations carry a penalty of the greater of $161,166 or 50% of the account balance per violation. Willful violations may also trigger criminal penalties of up to $250,000 and five years imprisonment, or $500,000 and ten years if the violation is part of another criminal act.
FBAR civil penalty maximums are adjusted annually under the Federal Civil Penalties Inflation Adjustment Improvements Act of 2015.
Form 8938 Penalties
Failure to file Form 8938 carries an initial $10,000 penalty, plus $10,000 per 30-day period following IRS notification (up to $50,000). Underpayments attributable to undisclosed foreign financial assets are subject to a 40% accuracy-related penalty, or 75% if fraud is established.
The statute of limitations does not begin to run until Form 8938 is filed. If gross income attributable to undisclosed foreign financial assets exceeds $5,000, the IRS has six years to assess tax.
Technical References
FBAR arises under the Bank Secrecy Act, codified at 31 U.S.C. §5314, with implementing regulations at 31 C.F.R. §1010.350. FinCEN delegated FBAR civil enforcement authority to the IRS; criminal enforcement remains with the Department of Justice.
Form 8938 arises under IRC §6038D, enacted in the Foreign Account Tax Compliance Act (FATCA), Title V of the Hiring Incentives to Restore Employment (HIRE) Act of 2010, Pub. L. 111-147. FATCA also imposed obligations on foreign financial institutions to report US account holders to the IRS, implemented through intergovernmental agreements. France operates under an IGA (Intergovernmental Agreement) with the US, which is why French financial institutions collect W-9 forms from US citizen account holders and transmit account information to the Direction Générale des Finances Publiques (DGFiP), which relays it to the IRS.
The duplex-form rule under Form 8938 provides that assets reported on Forms 5471, 8865, 3520, 8621, or 3520-A are exempt from detailed disclosure on Form 8938 Part IV. However, their full value must still be counted when determining whether the 8938 filing threshold is crossed.
Willfulness in the FBAR context does not require proof of intent to violate the law. Courts have found willfulness where a taxpayer deliberately avoided learning about the FBAR obligation (willful blindness). Good-faith reliance on a tax advisor has been accepted as reasonable cause in some cases, but is not a guaranteed defense.
The Streamlined Foreign Offshore Procedures, established under IRM 4.63.3, are available to US residents abroad who have been non-compliant with US tax obligations for non-willful reasons. Eligible individuals file amended returns for three years and six years of FBARs, certify non-willfulness, and pay any associated taxes and interest. No miscellaneous offshore penalty applies.